Tag: Al Rush

UAE REGULATOR DOES A BIT OF REGULATING

International Investment has written a jolly good article about the recent action taken by the UAE Insurance Authority – headed up by His Excellency Ibrahim Al Zaabi. I quote from Gary Robinson’s article:

“In a statement on the Arabic version on its website the IA has issued a circular confirming the suspension (of Holborn Assets) for a period of three months or until it is satisfied that the company has improved its performance.

According to Dubai-based sources that International Investment has been speaking to, the IA has written to regulated insurance companies notifying them of their action.”

I have no doubt that Holborn Assets will rise to the challenge magnificently and in a dignified manner – and will recognise the fact that it is time for the routine misuse of all insurance bonds in offshore financial services to come to an end. I also doubt Holborn Assets will sell any more RL360 products.

The Continental Wealth Management debacle must surely serve as a perfect example of how and why insurance bonds should not be used at all – and indeed how and why structured notes should be banned altogether. And yet, despite the Malta FSC’s lukewarm change in regulations to ban advisers without an investment license and limit structured notes to 30% of a portfolio, useless/pointless insurance bonds and toxic structured notes are very much the norm across the offshore financial services landscape.

The Eagle-eyed Sheikh Al Zaabi has obviously spotted something that regulators in all jurisdictions which affect British expats have turned a deliberate blind eye to. Insurance products can, have been, and are routinely abused. And the abusers often cause heavy losses to thousands of unfortunate victims. His Eminence also obviously recognises that turning a blind eye damages not only the jurisdiction in question, but also the reputation of financial services in general.

Quite frankly, it is shameful and embarrassing how many regulators behave (or rather fail to behave).

The FCA takes no action even when their nose is rubbed into obvious fraud – and let the British Steel disaster happen under their very noses. In fact it took public-spirited independent financial services professionals such as Al Rush, Darren Cooke and Henry Tapper to take it on themselves to try to rescue the steelworkers while the scammers hovered like vultures. I would like to be proud to be British, but the FCA is a national disgrace and an embarrassment to all British citizens. I wouldn’t mind if the FCA was just lazy, but it simply doesn’t care about the interests of those who get conned and scammed.

The Guernsey FSC allowed many frauds, including trustees Concept Trustees to sell UCIS fund EEA Life Settlements even after the FSA “toxic” warning. And, of course, EEA Life Settlements itself. Then the stable door shut with a resounding clang as an ombudsman was brought in, but told not to hear any complaints prior to July 2013. This effectively excluded all the worst scams which were being carried out in Guernsey by the likes of Concept Trustees – which took business from Stephen Ward’s Premier Pension Solutions which neither had regulation nor professional indemnity insurance.

The Gibraltar FSC appears to actively encourage outright scammers such STM Fidecs – and when financial crime is brought to their attention they go fishing for a few small, wet fish. Talking of fish, I think it is very fishy that Paul Garner, now of the Gibraltar FSC, used to work for scammer XXXX XXXX at Global Partners Ltd – the firm that “advised” hundreds of UK-resident victims to transfer their pensions to an STM Fidecs QROPS. Then STM Fidecs allowed XXXX XXXX to invest 100% of 100% of these victims’ funds into his own UCIS fund: Trafalgar Multi Asset (now in liquidation). I genuinely don’t know at which point Paul Garner moved over from Global Partners Limited to the Gibraltar FSC……but I have a feeling his leaving do will be an exceptionally (and uncharacteristically) lavish affair – and I am very much hoping to be invited. I hear there will be something fishy on the menu and Garner’s good fortune will be toasted with something bubbly. I have no doubt the cleaners will effectively brush all the crumbs under the carpet after the party.

The Central Bank of Ireland will be put to the test when scammers SEB (formerly Irish Life) are put in the spotlight. CBI has known for years that SEB – led by Peder Nateus and Conor McCarthy – has been facilitating financial crime. SEB took £ millions’ worth of business from unlicensed scammers Continental Wealth Management and allowed the whole lot to be invested in toxic structured notes: “for professional investors only”. These notes – including the fraudulent Leonteq ones (over which OMI is now suing Leonteq) clearly warned of the “danger of loss of part or all of your capital”. And yet SEB sat there and watched while hundreds of CWM‘s clients’ victims’ life savings were destroyed – and did nothing. This has left many victims in despair and poverty – with some contemplating suicide.

Against this backdrop of extreme ineptitude and collusion amongst this collection of chocolate teapots, motorbike ashtrays and fishnet willy warmers, let us all hope that the UAE Insurance Authority shows all these no-hopers what effective regulation should look, smell and feel like.

June 28, 2018
QUILTER – A NEW HOBBY FOR OMI?

Quilter – Old Mutual International – new name to try to hide past crimes

QUILTER – A NEW HOBBY FOR OMI? OMI – Old Mutual International – needs to compensate thousands of victims of financial crime which they facilitated. I can’t make up my mind whether they are adopting the brand “Quilter” to attempt to shake off their sordid and toxic past, or whether they are actually taking up quilting.

If OMI really is going to become a quilter, it needs to make a quilt depicting all the criminals whose crimes it has facilitated for so many years. And all the victims who have lost part of or all of their life savings.

What OMI really needs to do is to get firmly behind the prosecution of the criminals – from whom they profited for many years. OMI must contribute to the cost of denouncing these criminals and ensuring they are given maximum prison sentences.

Also, OMI – Old Mutual – must stop allowing toxic, professional-investor-0nly structured notes in their bonds. Typically, these were provided by Commerzbank, Nomura, Leonteq and RBC. If Old Mutual International wants to gamble away its own money on these crap products, then be my guest. But don’t expose retail pension savers to these sordid, high-risk instruments – used by the scammers as mere tiles in a game of Scrabble.

Thanks to IFA Al Rush, there is now a criminal investigation into the hordes of vultures who preyed on the British Steelworkers. This has been eloquently reported by Henry Tapper in his blog about the police investigation at Port Talbot.

Al Rush championing the British Steelworkers who have been scammed

Al Rush has suggested the wording which victims can use to report those who scammed – or attempted to scam – them. And all of what Al and his colleagues have done has been done at their own expense and out of a sense of decency.

Hard to tell the difference between OMI and Quilter and Jabba The Hut

This is in stark and stinky contrast to OMI – Old Mutual International. Since 2011, OMI has sat and watched – like a cross between Jabba The Hut and a Black Widow Spider – while thousands of victims have seen their life savings dwindle away to very little or even nothing. And all the while, taking extortionate fees and paying commissions to the very scammers who ruined the victims in the first place.

So does OMI really think that adopting the name “Quilter” will make future victims fail to make the connection – that this is the same firm that took business from dozens of unregulated scammers such as Continental Wealth Management, Abbey Financial Solutions, Holborn Assets, Guardian Wealth Management, and other “chiringuitos”?

Perhaps the worst crime committed by OMI is not that they took business from unlicensed scammers; not that they allowed 100% of victims’ pension funds to be invested in professional-investor-only, high-risk structured notes; not that they sat there idly and negligently while the clients’ pensions and investments shrank inexorably……

Old Mutual International – the rubbish end of financial services

the worst of OMI’s crimes has been that when there are only a few crumbs left of a life-time’s retirement savings, they will still charge crippling early-exit penalties. OMI, or Skandia, or Quilter or Jabba The Hut or whatever the hell this toxic, evil shower call themselves, have no place in financial services. They have facilitated and profited from financial crime for years and benefited from the misery and ruin of thousands of victims.

In an attempt to emulate Al Rush’s suggested police report for British Steel victims at the hands of the various scammers who targeted, stalked and scammed them, here is my suggested report for OMI victims to make to the police and the regulators. Naturally, this will work equally well for victims of Generali, SEB, RL360, Friends Provident, Hansard, Investors Trust etc.

OMI must be sanctioned for facilitating financial crime

‘I was advised to transfer out of my personal/occupational (delete as appropriate) pension scheme and was lied to when I asked about how much money would be taken from me. I think, over time especially, I will lose/have already lost many tens of thousands of pounds (probably, hundreds of thousands of pounds) in fees which were hidden from me.

This will bleed my pot dry, leave me exposed to poverty in old age and create a burden on the local council.

I was specifically told there would be no penalties or lock-in periods.

Can you help me please, I would like to make a formal statement and help you bring charges against those who did this, and those who helped them’.

January 20, 2018
CHARLIE CHARLIE, SAUSAGE AND CHIPS – WATCH OUT BRITISH STEEL WORKERS!
CHARLIE CHARLIE, SAUSAGE AND CHIPS – WATCH OUT BRITISH STEEL WORKERS!

I’ve just read Henry Tapper’s blog and Frank Field’s letter to Clive Howells of Celtic Wealth Management.

What struck me about Henry’s blog was that he has summarised a new version of the same old, same old situation we’ve seen many times before over the past few years. A cosy and stinky relationship between the introducer, the adviser, the transfer administrator, and the fund manager.

What then struck me about Frank Field’s letter to Clive Howells of Celtic Wealth Management (the “introducer” who has been stalking the beleaguered British Steelworkers) was that Frank is a good sort – and I’d like to buy him lunch (although it won’t be sausages and chips!).

It is clear from what Henry has written, that the British Steelworkers have been in danger of having their pensions invested in a load of complicated and expensive crap by advisory firm Active Wealth UK Ltd:
- Vega Algorithms AWGO – Ultra-Conservative portfolio
- 5Alpha conservative UCITS managed by Newscape Capital Group
- Gallium Fund Solutions Ltd
And, indeed, it looks like at least 100 victims have, sadly, already been successfully transferred into the scheme.

I don’t like the look of Newscape Capital because it runs the risk of harbouring investment scammers. An example of this is the Nascent Fund which facilitated XXXX XXXX’s Trafalgar Multi-Asset Fund investment scam. Henry has eloquently outlined the inherent risks in these three entities as well as the introducer/adviser. So, I won’t add to his already detailed summary.

But let us have a closer look at Frank Field’s letter to Clive Howells of Celtic Wealth Management:

I would be grateful if you could assist our ongoing work on the British Steel Pension Scheme by answering the following questions:
1. What is the a) highest and b) average fee that you have received in respect of BSPS clients?
2. What proportion of the fees you received were paid a) directly by clients; b) by IFAs or other companies?
3. How many payments did you make to individuals to reward them for recommending your service to clients?
4. What benefits do unregulated introducers bring to clients other than sausage and chips?
And herein lies the problem: the scourge of the “introducer”. The ordinary man in the street (or steelworks) doesn’t know the difference between an introducer and an adviser. We’ve seen many instances of individuals and firms acting as introducers for rogue advisers: Viva Costa International for Gerard Associates in Stephen Ward’s London Quantum scam; Continental Wealth Management for Stephen Ward’s Evergreen QROPS/Marazion loans scam; Jackson Francis in XXXX XXXX’s Trafalgar Multi-Asset scam; Phillip Nunn’s Nunn McCreesh firm which lured thousands to financial ruin in the Capita Oak, Henley and multiple SIPPS scams.

History tells us that in many cases these individuals and firms are simply parasites and pimps who prey on vulnerable people. Indeed, Clive Howells used to run Bespoke Pensions in a scheme that saw victims’ pensions being invested in illiquid, speculative, high-risk crap such as The Resort Group’s Cape Verde holiday properties.

Bespoke Pension Services was an unregulated firm and their address was a virtual office. According to their published accounts the firm was insolvent at the time they were trying to get people to transfer their pensions into schemes which invested in unsuitable assets. The two directors/shareholders – Mark Anthony Miserotti and Clive John Howells – had between them (reportedly) an impressive portfolio of investment, consultancy, property development, investment and financial planning companies – one of which was called “Fortaleza Investments” (suggesting something Brazilian).

The Royal London v Donna Marie Hughes case should ring alarm bells straight away with Clive Howells. As should the accusations of sexual assault made against him in 2004. A police officer testified that Howells had groped her bottom and breasts, as well as trying to force his tongue into her mouth. Howells denied the charges – although he did, apparently, admit to snogging the young WPC. At the time of the alleged attack, Howells was a Superintendent with the Welsh Police. And married.

In the words of Lewis Carroll:

“Beware the Jabberwock, my son!

The jaws that bite, the claws that catch!

Beware the Jubjub bird, and shun

The frumious Bandersnatch!”

to which I will add a little verse of my own:

“Beware the introducer, my man

The silver tongue, the patter slick

Beware the likes of Howells if you can

The frumious, bandersnatch, jubjub dick!”

My sincere congratulations and thanks for the sterling work done by Henry Tapper, Darren Cooke and Al Rush to help protect the British steelworkers from the likes of Clive Howells. And a merry xmas to all – especially Frank Field!
December 20, 2017
HOW TO SPOT A SCAMMER (FOR DUMMIES)

Al Rush, Henry Tapper, Darren Cooke, Steve Webb and Michelle Cracknell

Knowing how to spot a scammer is half the battle in the fight against pension and investment scams. And my idol and hero in this fight is Darren Cooke of Red Circle Financial Planning. Armed with his petition calling for a cold-calling ban, he quickly became a t.v. star and National celebrity.

UPDATE: Cold-calling has still not been fully banned!! (20/11/2018)

Last week, on Monday 19th June 2017 (the week of the dreaded Ark trial) I had the privilege to attend the Great Pension Transfer Debate in Peterborough – organised by the amazing Al Rush and chaired by the awesome Henry Tapper. There I met a few people I already knew but also got to meet Darren Cooke in person and tried hard not to graze my knees as I groveled humbly before him. I also met some other wonderful professionals and heard some wonderful speakers – not the least of which were Sir Steve Webb and Michelle Cracknell.

But – and I mean no disrespect to the event and it’s organisers – all the excellent things which were said during the presentations depended entirely on the quality and honourability of the advice given. With only one notable exception, the event was attended by the ethical, qualified, regulated cohort of the profession. But, of course, out in the field there are sharks and shysters by the dozen – both in the UK and offshore.

In fact, this event was a world away from the world I live and work in. The attendees of this event were the cream of the financial services profession; those who pride themselves in being ethical, honest and conscientious. Most of the people there already had reputations for maintaining the highest possible standards of professional excellence, respecting the law and regulations, and actually caring about their clients. But I felt like a fish out of water, because generally I am dealing with criminals who have deliberately and callously ruined thousands of lives – some of whom are now, thank goodness, under official investigation by the SFO.

I asked the question “could all the scammers identify themselves” – and while this produced a few chuckles, it produced not a single (or the single) hand. And thereby lies the problem: how does the public distinguish between the ethical guys and the scammers? The scammers wear the same clothes; talk the same talk; have the same leather-bound portfolios and briefcases and sport the same smart hair cuts. They probably have more go-faster stripes and fluffy dice on their Aston Martins, but other than that they are indistinguishable from the good guys.

So, those in the know probably understand how to check qualification and regulation at the drop of a hat – but how does the ordinary man in the street – or on the Clapham Omnibus – know how to do that? Does the public know that there are a few – very few I would add – regulated and qualified firms and individuals in the UK who are scammers? (Ok, there are masses offshore, but let’s concentrate just on our mainland for the time being).

And even if a member of the public does know how to do that, do they have any idea what else to check or verify? Again, the answer is: of course not. So why don’t we start with the basics: the FCA register. That ought to tell the enquirer whether a firm is regulated – but that is part of the problem: regulated for what exactly? A firm which is regulated for insurance mediation is not regulated for pension or investment advice. But the ordinary man in the street does not understand that. Then you’ve got qualifications; looking up an individual on the CII register might show up a “student” member, but a member of the public might not know that is not the same thing as a qualified member.

But then you have firms which are FCA regulated but which are still scammers – albeit very few to my knowledge (but still enough to cause sufficient damage to large numbers of victims). And, of course, offshore it is simply “open season”.

The creepy crawlies of the financial services world (ugh!)

Rather than trying to figure out how to spot a scammer, perhaps we should have a go at deciding what constitutes a scam and work backwards from there. The Cambridge dictionary defines a scam as “an illegal plan for making money, especially one that involves tricking people“

The Business Dictionary defines a scam as “A fraudulent scheme performed by a dishonest individual, group, or company in an attempt to obtain money or something else of value. Scams traditionally resided in confidence tricks, where an individual would misrepresent themselves as someone with skill or authority, i.e. a doctor, lawyer, investor”

The classic financial services scam consists of an individual who purports to be a qualified adviser who is part of a firm which is licensed in the appropriate jurisdiction to provide the advice required – normally something to do with pensions and/or investments. Then the adviser, who has by now claimed to be “fully” qualified and regulated, will sell the unsuspecting client a scheme and/or investment which is not appropriate for their agreed risk profile. Often the word “independent” has gone out of the window, because the adviser will merely invest the client into whatever pays the adviser himself the most commission – and sometimes that is even his own fund for which he is promoter or distributor.

There are many variations on this theme – and many peripheral scammers providing cold-calling, lead generation and marketing services and loan facilities as well as spurious “introducers” which pose as quasi advisers. And then there are the accountants who sell tax-avoidance investment schemes and employee benefit trusts – resulting in heavy losses and tax liabilities. And then there are the UCIS providers peddling such rubbish such as collapsible holiday flats in an obscure part of Africa; oblong bits of tarmac not too far from an airport; truffle tree plantations; recycling inventions and empty tin cans.

If we keep it simple for now: how does the ordinary man in the street or on the Bakerloo Line check out a UK-based financial adviser? First check his qualifications; second check out that his firm is regulated by the FCA to provide the service being sought i.e. pension and/or investment advice; third ask for evidence of professional indemnity insurance; fourth check the solvency of the firm.

If the advisory firm goes bust and the client loses a large amount of money, the maximum the client can claim from the Financial Services Compensation Scheme is £50,000 for investments. The best place to check solvency is Companies House where you can look up a company’s accounts and see how profitable and solvent it is. And then ask yourself whether you want to take financial advice from a firm which can’t even look after it’s own finances.

One example is an advisory firm in Guildford which has been trading for 21 years. For twelve of those years the company has made a loss. On total turnover of £11 million since it started trading, it has made a total profit of £36 thousand during the entire period. Would you want that firm to advise you on your finances?

So, my advice is check, check and check again. And when you think you have exhausted all the checks, get a second opinion. The information is out there – it is just a question of knowing where and how to look for it; what questions to ask and how to understand the answers. And then you’ll be a man, my friend. SMILEY FACE 🙂

What is a Pension Scam?

June 28, 2017